ImmunityBio Shares Tumble Following Mixed Trial Data

ImmunityBio US45256X1037

Friday's trading session delivered a sharp correction for ImmunityBio's stock, marking a significant pullback after a remarkable rally. The shares closed down more than 12%, a stark contrast to their performance over the preceding month, which had seen gains exceeding 200%. The catalyst for the sell-off appears to be investor uncertainty surrounding newly released clinical trial data.

Market activity was exceptionally heavy, with trading volume soaring to approximately 76 million shares. This figure represents more than triple the average daily volume seen over the prior three-month period. Such elevated activity strongly indicates that a substantial number of investors chose to secure profits following the stock's dramatic ascent. Despite the single-day decline, the equity remains up 63% when measured over the course of the full trading week.

A Closer Look at the Clinical Update

The company released an interim update from its Phase 2 study, known as QUILT 3.078, which is evaluating a treatment for recurrent glioblastoma. This form of brain cancer is notoriously aggressive. ImmunityBio's approach involves an immunotherapy regimen administered without traditional chemotherapy, representing a novel strategy for these patients.

Key data points from the ongoing investigation include:

• Enrollment of 23 patients with advanced glioblastoma
• Survival of 19 participants to date
• Documentation of four patient deaths
• Median overall survival rate not yet reached
• One patient surviving for 12 months post-relapse, with treatment continuing

These interim results are viewed as notable because the typical survival expectation following a recurrence of this cancer is only six to nine months. The fact that the median survival cannot yet be statistically calculated suggests that patients in the trial may be living longer.

Regulatory Progress Provides a Counterbalance

Separate from the glioblastoma data, ImmunityBio recently received encouraging feedback from the U.S. Food and Drug Administration (FDA). The discussions concerned a potential resubmission for the drug Anktiva as a treatment for bladder cancer. Significantly, the regulatory agency did not request a new clinical trial, asking instead for supplementary information. The company has stated it plans to provide this data within a 30-day window.

The coming weeks are likely to determine whether the current market valuation of ImmunityBio is justified by its immunotherapy pipeline. With additional glioblastoma study results anticipated and the planned FDA submission on the horizon, several concrete milestones are approaching.